Total Plans to Sell 12.5% Stake in Nigerian Oil Block

• Total Plans to Sell 12.5% Stake in Nigerian Oil Block

French oil giant, Total Group, is planning to sell a 12.5 percent stake in a major deepwater oilfield in Nigeria in a move to adjust its Africa’s portfolio.

Total is seeking to sell its 12.5 percent stake valued at $750 million in Oil Mining Lease 118 located at 120 kilometres (75 miles) off the Niger Delta, according to sources familiar with the situation.

The sources said an investment bank, Rothschild, is handling the sale process for the energy company.

The Royal Dutch Shell holds the largest stake in OML 118 at 55 percent, while Exxon Mobil holds 20 percent. Italy’s Eni and Total own 12.5 percent each.

Total is now selling its 12.5 percent stake as part of its plan to sell $5 billion of assets around the world by 2020.

The oil block includes the Bonga field, Nigeria’s first deepwater project started in 2005 and produced about 225,000 barrels and 150 million standard cubic feet of gas per day at its peak.

Oil production from the block is expected to grow with the $10 billion development of the Bonga Southwest field. The block could produce up to 200,000 barrels per day, representing 10 percent of the nation’s current oil output.